Limited Liability Companies - Filing Requirements
Determine the Correct Form
Knowing the correct form to file is important. For California tax purposes, we conform to the federal check-the-box regulations. LLCs are classified in the following ways:
- LLCs with more than one member default to a partnership classification.
- LLCs with only one member default to a disregarded entity.
- LLCs may also elect to be treated and taxed as a corporation.
All LLCs must file the appropriate form according to how they are treated for California tax purposes. Below are examples of the proper forms to file based on how your LLC is treated under the California Revenue & Taxation Code (R&TC).
An LLC treated as a partnership or as a disregarded entity that is doing business in this state under R&TC Section 23101 or files articles of organization or application to register with the Secretary of State must file California Form 568, Limited Liability Company Return of Income, pay the annual tax of $800, and LLC fee if applicable. An LLC that is treated as a disregarded entity includes its income and expenses in its owner’s tax return. However, the LLC still needs to file a partial California Form 568 and pay the annual tax and LLC fee if applicable. See California Form 568 Booklet instructions for more information.
An LLC that is treated as a corporation that is doing business in this state under R&TC Section 23101, files articles of organization or application to register with the Secretary of State or has California source income to report must file California Form 100, Corporation Franchise or Income Tax Return or California Form 100S, S Corporation Franchise or Income Tax Return, California Form 100W, California Corporation Franchise or Income Tax Return - Water’s-Edge Filers and pay the appropriate tax.
An LLC that received California source income, but is not subject to the $800 annual tax or LLC fee because it is not doing business in California nor has it filed articles of organization or application to register with the Secretary of State, should file California Form 565, Partnership Return of Income, instead of California Form 568, Limited Liability Company Return of Income.
CA and Federal: Form Filing | Tax Requirements
|LLC Type||Annual California Franchise Tax Due||Subject to
Annual LLC Fee
|Multiple member LLC treated as a partnership||$800||If the CA total income is equal to or greater than $250,000||FTB Form 568||IRS Form 1065|
|Foreign non-registered LLC that meets all of the following:
||No||No||FTB Form 565||IRS Form 1065|
|Disregarded single member LLC||$800||If the CA total income is equal to or greater than $250,000||FTB Form 568, Sides 1, 2, 3, 7
andSchedules B and K if applicable.
See FTB Form 568 Booklet for more information.
|No filing requirement. Refer to IRS for further information.|
|Multiple/single member LLC treated as a corporation||$800 minimum, additional tax as applicable.
||No||FTB Form 100, FTB Form 100S,
orFTB Form 100W
|IRS Form 1120
orIRS Form 1120S
For taxable years beginning on or after January 1, 2011, California changed its rules on what constitutes doing business in this State under R&TC Section 23101. To determine if you are doing business in California under the new rules, see R&TC § 23101 - Doing Business.
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